The new chairman of Marks & Spencer will receive 40 per cent less than the incumbent Sir Stuart Rose.
Veteran investment banker Robert Swannell takes up the position following two years of tumult over the pay of Rose, whose position as executive chairman has been heavily criticised.
M&S confirmed this week that Rose would leave at the end of the year, more than six months before the deadline set when he took on the controversial role. Swannell, former vice-chairman of Citigroup, who helped the retailer to fend off a bid from Sir Philip Green in 2004, will take up the office on 4 January.
M&S said Rose would remain as chairman until January to "ensure a smooth transition" after which he would step down from the board and leave the company.
Reportedly Swannell will earn £450,000 a year for the three-day-a-week role. Rose currently gets £875,000 - a salary that made him the highest paid non-executive chairman of a FTSE 100 company.
The retailer said Swannell's pay was in line with that of previous chairmen including Lord Burns and Luc Vandevelde.
During his 33 years at Citi, Swannell acted for P&O Princess when it was taken over by Carnival in 2003 and advised Roman Abramovich on his takeover of Chelsea Football Club.
It has been a period of change at the top of the food and clothing specialist. Former Morrisons’ ceo Marc Bolland was named chief executive of the retailer last November, enticed by a £15 million pay deal.
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